Question
19. A company's stock has a beta of 1.3 and currently sells for $75 per share. The company just paid a dividend of $3 and
19. A company's stock has a beta of 1.3 and currently sells for $75 per share. The company just paid a dividend of $3 and future dividends are expected to grow at 3% annually. Assume the risk-free rate is 2.75% and the expected return on the market is 7.5%. What is the company's cost of equity capital?
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Fixed Income Securities Tools For Todays Markets
Authors: Bruce Tuckman, Angel Serrat
3rd Edition
0470891696, 978-0470891698
